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This Cannabis Co. Beat Tilray As Best Performer Among Canadian LPs As Stocks Plunge Over 13%





It seems the losing streak continues for the Canadian Cannabis LP Index for the sixth month now, after declining 13.5% in December to 194.95, New Cannabis Ventures writes.

After a 1% gain in June, the index retreated nearly 27% in the third quarter.

The index, which fell 30.1% in 2020 to end at 275.16, dropped 26% in the fourth quarter and 29.2% for all of 2021.

In addition, it remains considerably below the all-time closing high of 1314.33 in September 2018. A new multi-year closing low of 196.10 was recorded in March 2020.

The index includes 25 qualifying publicly traded cannabis companies that traded in Canada at the end of October. The companies are divided into three sub-indexes, including Canadian Cannabis LP Tier 1 Index (5 companies), Canadian Cannabis LP Tier 2 Index (8 companies) and Canadian Cannabis LP Tier 3 Index (12 companies).

The index, rebalanced each month, requires companies to have a price of at least CA$0.20 ($0.16) unless they are generating at least CA$2.5 million quarterly from their cannabis production operations.

The overall index will have 24 constituents for January, as Village Farms has delisted from the TSX.

Tier 1

The five largest Canadian LPs, by revenue that generate at least CA$30 million per quarter were Aurora Cannabis Inc. (TSX:ACB) (NASDAQ:ACB), Canopy Growth Corp.(TSX:WEED) (NASDAQ:CGC), HEXO Corp (TSX:HEXO) (NASDAQ:HEXO), Tilray Inc. (TSX:TLRY) (NASDAQ:TLRY) and Village Farms International Inc (TSX:VFF) (NASDAQ:VFF).

Village Farms was the best performer within the group, which fell 5.1% to 402.42 in December. Over the last five years, the company’s stock has outperformed some of the most popular stocks globally, including Microsoft, Apple, Netflix and Facebook. In addition, Village Farm’s stock traded 0.86% higher at $6.47 per share at the time of writing.

The worst performer among the largest Canadian LPs was HEXO, declining 38%, followed by Tilray’s decline of 31%.

After a recent acquisition spree, which included Redecan and 48North Cannabis Corp., HEXO is looking to streamline its operations to core facilities as part of its ongoing integration plan. New measures under the strategic plan, dubbed “The Path Forward,” include: reducing manufacturing and production costs, streamlining and simplifying its organizational structure, realizing cost synergies, focusing on revenue management and accelerating growth through organic market share gains.

In its latest earnings report, HEXO revealed a wider loss of CA$116.9 million in the first quarter and CA$50.2 million quarterly sales. In November, former co-founder and CEO of the Ottawa-based company, Sebastien St-Louis, resigned from HEXO’s board of directors.

Tier 2

After losing 35.9% in 2020, the Canadian Cannabis LP Tier 2 Index closed at 365.19, only to continue dropping by 2.5% in 2021. In December, Tier 2 fell 15% to 302.79.

Among eight qualifying companies with cannabis-related quarterly sales between CA$7.5 million and CA$30 million, Indiva Limited. (TSXV:NDVA) (OTC:NDVAF) had the largest gain of 18% among the group, while The Valens Company Inc. (TSX:VLNS) (NASDAQ:VLNS) saw the largest decline of 27%.

The Canadian producer of cannabis edibles, Indiva, revealed a 143% year-over-year spike in gross revenue recently reaching CA$8.3 million in the third quarter, which was the company’s 7th consecutive quarter of year-over-year net revenue growth.

After debuting on Nasdaq Capital Market under the symbol “VLNS” in early December and announcing that it had entered into a CA$40 million secured non-revolving term loan with 2361380 Ontario Limited., Valens inked two agreements with Mexican drug supplier PMI Mexico – a subsidiary of Merger Group – to provide CBD Oil and prebiotic products and partnered with Montreal Cannabis M?dical Inc. to provide manufacturing and extraction services for MTL’s pre-rolls and vapes.

Tier 3

Tier 3, which included the 12 qualifying LPs that report cannabis-related quarterly sales of CA$2.5-CA$7.5 million rose 0.4% as it closed at 53.35. After ending at 66.59 in 2020, it was down 19.9% in 2021.

The worst performance among this group was from Lifeist Wellness Inc. (CSE:LFST) (OTC:NXTTF), formerly Namaste Technologies, which dropped 25%. The best performer was Avant Brands (TSXV:AVNT) (OTC:AVTBF), which rose 25%.

Lifeist Wellness recently announced the launch of CELLF, a novel cellular therapeutic compound targeting systemic fatigue, via its biosciences and consumer wellness subsidiary, Mikra Cellular Sciences Inc.

Photo: Courtesy of Maxim Hopman on Unsplash

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Will You Sell Your Dogecoin If It Reaches $0.50 (Again) in 2022? Over 75% Say…





Every week, Benzinga conducts a survey to collect sentiment on what traders are most excited about, interested in or thinking about as they manage and build their personal portfolios.

This week, we posed the following question to Benzinga visitors: Will you sell your Dogecoin (CRYPTO: DOGE) if it reaches $0.50 in 2022?

Since early 2021, it’s no secret Dogecoin’s price has risen or fallen in sympathy with both the price of Bitcoin (CRYPTO: BTC) and tweets by Tesla Inc (NASDAQ:TSLA) CEO Elon Musk. Heavy support for Dogecoin, by Musk, might give the meme crypto a shot at reaching $0.50 in 2022.

Back on May 8, 2021, Dogecoin reached an all-time high of $0.7376 in anticipation of Musk’s appearance on Saturday Night Live. The meme crypto is since trading lower by 81.7%. 

Here are the full results from this week’s survey:

Yes, I will sell my Dogecoin if it reaches $0.50: 75.3%
No, I will not sell my Dogecoin if it reaches $0.50: 24.7%

This sentiment study was conducted amid another active week of trading, which saw the meme cryptocurrency fall by over 28%.

At the time of publication, Dogecoin was trading around $0.1338, down 11.2% in the past 24 hours.

See Also: Dogecoin Vs. Shiba Inu

This survey was conducted by Benzinga in January 2022 and included the responses of a diverse population of adults 18 or older.

Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from over 1,000 adults.


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Apple Poised to Outperform Expectations in December Quarter, Analyst Says: How Will Shares React?





Notwithstanding supply constraints, an analyst at Morgan Stanley is positive about Apple Inc.’s (NASDAQ:AAPL) December quarter performance.

The Apple Analyst: Morgan Stanley analyst Katy Huberty has an Overweight rating and a $200 price target for Apple shares.

The Apple Thesis: Cupertino is likely to post upside to Street forecasts for the December quarter and guide to a relatively in-line March quarter, thanks to improving iPhone production into year-end and modest Services outperformance, Huberty said in a note. Since hitting a low on Oct. 4, Apple’s shares are up 19%, suggesting the December quarter upside is largely priced in, she added.

The analyst models December quarter revenues of $122.3 billion, a 41.9% gross margin and $1.97 per share in earnings. Apple’s management will likely shed light on its active device and iPhone installed base, the analyst said.

Among products, Apple may have shipped 83 million units of iPhones, 7.6 million units of Macs and 14.9 million units of iPads, Huberty said. The analyst estimates total product revenues of $103.1 billion, which is above the consensus estimate of $100.3 billion.

Services revenue is likely to come in at $19.2 billion, also above the consensus estimate of $18.6 billion, Huberty said. The upside is due to stronger-than-expected App Store performance and Apple’s Licensing & Other segment, she added.

Given the sustained presence of COVID-19, management is unlikely to offer a revenue guidance range for the March quarter and instead will likely provide commentary on segment growth trends, she noted.

Related Link: Apple Becomes First Company To Top $3 Trillion Market Cap; Analyst Says Rally Has Further Legs

Apple shares have underperformed thus far in January after December’s outperformance, the analyst said. Apple is expected to release the iPhone SE3 in April/May this year, the iPhone 14 in Fall 2022 and a mixed reality headset in 2023, Huberty noted.

Morgan Stanley said it would be a buyer on any weakness post-earnings, as it views Apple as a more “defensive/quality outperformer” in challenging markets. The company’s 1.65 billion+ installed base with high loyalty/retention rates, underweight institutional positioning, along with strong capital returns and the tendency for it to outperform ahead of product cycles make the firm positive on Apple stock, Morgan Stanley noted.

AAPL Price Action: Apple shares were down 2.10% to $162.41 at market close Friday.

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Bitcoin May Be Plunging Hard, but Look Who’s Buying the Dip





The sell-off seen in the crypto space is continuing into the weekend, and Bitcoin (CRYPTO: BTC), the apex crypto, is no exception. Bitcoin-backer and El Salvador President Nayib Bukele, unsurprisingly, is seeing the weakness as a buying opportunity.

What Happened: Bukele said in a late Friday tweet that the country has purchased an additional 410 Bitcoins for $15 million, the nation now holds over 1,500 BTC. The president also suggested that some current sellers are liquidating at throwaway prices.

The tweet was in reply to his own Jan. 14 tweet, in which Bukele indicated that he might have missed the dip at the time.

The tweet elicited mixed responses. One Twitter user said Bukele wasted over $36,500 per Bitcoin and suggested that if the president wants to make bad bets on Bitcoin, he should be doing so with his own money. He challenged Bukele to disclose his personal Bitcoin holdings.

Meanwhile, another user supported the Bitcoin purchase and said the president is seeing the big picture, while others don’t understand Bitcoin is a long-term asset.

Related Link: Bitcoin Slips Below Crucial $40K Level, Taking Ethereum, Dogecoin Down With It: US Treasuries, Russia, Outflows And More That’s Weighing

Why It’s Important: After seeing a downtrend since hitting a high in early November, Bitcoin has come under further pressure in the new year. Since the start of the year, the apex currency has lost over 20%, implying it is sinking further into bear market territory.

El Salvador has the distinction of being the first country to adopt Bitcoin as legal tender, alongside the U.S. dollar, on Sep. 7, 2021.

At the time, Bukele reasoned the move would spur investment in the country and come in handy for 70% of its citizens, who don’t have access to traditional financial services. The country has also made plans to build a Bitcoin city, financing the construction by the issuance of a $1 billion Bitcoin Bond.

BTC’s trajectory in the near- to midterm will determine the success of the country’s Bitcoin strategy and whether Bukele will be vindicated. At last check, Bitcoin was seen down 7.56% in the past 24 hours to $35,486.19.

Related Link: How to Buy Bitcoin

Photo: Courtesy Blockzeit CH on Flickr


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